Residential rents rise as demand outstrips supply

A LACK of supply is pushing rents up in the North, signalling a revival in the region’s lettings market, according to the Royal Institution of Chartered Surveyors.

The net balance of chartered surveyors in the North reporting rising rather than falling rents rose to 20%, from -13% back in January, the latest RICS lettings survey shows.

This is a marked contrast to April last year when 58% of surveyors in the UK reported falling rents, an all-time low for the survey.

The more positive outlook for rents can be part attributed to the continued decline in the supply of both flats and houses in the marketplace, which has helped gross yields increase in the North for the first time in a year.

RICS North West spokesperson, John Halman of Gascoigne Halman in Wilmslow, said: “Demand for rental property in the North West is increasing, especially for lower end property, with a healthy demand for higher end homes which bring in rental levels of up to £3,000 per calendar month.”

He added: “As a consequence of lack of finance there are no new investors and existing investor landlords are not expanding their portfolios. The prospect of capitals gains tax on the sale of property will accelerate this in the future and this will ultimately further decrease the availability of properties in the private rented sector, which could push rent levels even higher.”